A recent media report mentioned that the IT major, Wipro was pausing variable payouts for April-June quarter for mid and senior-level employees.
Wipro Pausing Employees Variable Payouts
Clarifying on this subject, Wipro said that it has not changed its earlier stance on salary increase, and pay hikes for its employees will be effective from September 1.
Besides this, the Indian IT major has also said it has completed the first cycle of quarterly progressions effective July 1.
The report noted that the employees in Band C (mid-manager level) and above will not be given variable compensation.
Further adding that incentives for people in sales roles have also been impacted.
Wipro’s Take On Circulating News
Contrary to this report, Wipro said, “We have no further comments on the quantum of variable pay,” in its official statement.
Usually, it gives variable pay on a quarterly basis and sets the variable pay for employees in Bands A, B, and Rainbow (trainees) on the employee’s billable days for the quarter.
These variable compensation components are based on the financial parameters of the organization for Band C and higher.
Further adding, Wipro said that it has completed its first cycle of quarterly promotions but did not comment on the variable pay that was rolled out to its employees.
These comments come on the back of news reports that variable pay of employees of certain bands were impacted because of margin pressures.
Low Margin In June Quarter
It is noteworthy here that the fourth largest company in India faced a low margin of 15% for the June ending quarter compared to 18.8% in the same period last year.
Earlier media reports in July mentioned that Wipro is overhauling its employee bonuses and increments to rein in high attrition and attract fresh talent as India’s technology sector continues to see a covid-induced boom in hiring.
That time the IT giant said that “Wipro will roll out several promotions for its employees, starting July. Going forward, the company has decided to offer quarterly promotions to its top performers, up to mid-management level. Wipro is expected to roll out hikes in September,”.